Sample RSK80006 Risk Management

RSK80006 Risk Management Assignment Sample

General Instructions for Assignment 3

• The Assignment 3 of RSK80006 Risk Management unit in 2021 Semester 2 (SUT-Hawthorn) is for 40% weighting.

• The deadline for submission of RSK80006 Assignment 3 is: 29th October 2021 (11:59PM)

• The questions of Assignment 3 are from Module 3 portions in Week 9 to Week 12 of Semester 2 as well as Modules 1 and 2 covered from other weeks (i.e. week 1 to week 8).

• The list of questions and break-up details of marks are in the following section (3.4).

• Upload your assignment submissions in designated submission portal under Assignments section in RSK80006 unit Canvas

• Use Microsoft WORD or Adobe PDF document file format for assignment help

• Use Harvard referencing style

• Tentatively, maximum page limit (excluding coversheet) for this Assignment 3 is 12 pages.

Question 1 of Assignment 3 (20 marks)

Consider any one recently completed or current project as your case-study background to prepare answer for this Question 1 of Assignment 3. Answer any one of the following options in

Question 1:

• Provide your assignment of risk management recommendations to achieve safety performance objectives in this project, which has some activities/ tasks with uncertainties from hazards of working in narrow confined underground site operations

• Provide your assignment of risk management recommendations to achieve schedule (i.e. time related) performance objectives in this project that encounters uncertainties such as delays in some materials supply, contractor disputes, significant changes/ variations, and some adverse weather conditions during project delivery periods.

• Provide your assignment of risk management recommendations to achieve quality performance objectives in this project, which has noteworthy observations of rework, wastages, defects, and some non-compliances rendering quality deviations.

• Provide your assignment of environmental risk assessment and risk management recommendations to achieve environmental/ sustainability performance objectives in this project, which encounters some environmental impact assessments for significant levels of noise, dust, and hazardous chemicals found in project operations.

Question 2 of Assignment 3 (20 marks)

Assume that you are responsible for risk management in a particular enterprise/ organization in an engineering industry. You are required to prepare your assignment for designing and implementing a risk management system in your organization. Your assignment need to consider the following:

• Risks identified, targeted objectives and values
• Risk criteria and management agenda
• Design details of risk management system including roles and responsibilities for risk management
• Implementation Plan for the risk management system
• Monitoring and reviewing/ auditing plan for the risk management system

Solution

Question 1: Risk management recommendations to achieve safety performance objectives

Introduction

UGL is one of the leading asset solution providers that operate in many different sectors such as engineering design, asset management, operation and maintenance, facilities handling, and manufacturing sectors (Ugllimited. 2021). The company is working on the West Angelas Power Station, located in West Australia. This power station is integral to the mining network in Pilbara, West Australia. The power station is responsible for providing power to the rail network that connects different parts of the mining network. UGL is tasked with finishing the construction and installation of equipment for the power station and managing various aspects of the overall project. Construction processes are known for containing high-risk factors (Valipour et al. 2017). This report attempts to assess the safety risks that can impact the project completion and to provide recommendations that can help the project completion successful regarding sustainability and environmental goals. The assessment is provided in a tabular form with the help of well-described risk criteria and risk scores. Risk scores can enable defining the proper weightage of each risk factor. This is done via numerical balancing based on priority.

Risks involved in the project

The completion of the construction and installation project is highly complex. The company UGL has to uphold the complete responsibility of managing the entire project. It is essential to effectively handle risks in construction processes (Serpell, Ferrada, and Rubio, 2017). Proper handling of such risks can be used to improve the performance of a company (Masuin, Latief, and Zagloel, 2020). Sustainability is one of the main requirements of intricate construction processes (Ahn, Kim, and Kim, 2020). Unique risks and Obstacles can come up in the completion of the process. This section of the report will make sure that the safety risks that are involved in the project are adequately assessed. The installation of two generators that are essential to the functions of the power station was one of the most high-risk operations (Ugllimited. 2021). The company also had to deal with the consumer gas system, diesel inventories, and fire detection ((Ugllimited. 2021)). There are various risks associated with the installation of such types of equipment. The workers that are in charge of on-field activities run the risk of getting exposed to harmful gas, inhaling diesel and other harmful substances, getting burned through power leaks, and electric shock due to malfunctioning equipment. The construction site of the project contains risks such as the collapse of building parts, injury due to mishandling of machinery, hearing loss due to loud noises. The transport and logistics risks are also present due to UGL handling the procurement process of materials.

Risk Assessment

Recommendations

Some suggestions can be made after analysing the construction process taken up by UGL. These recommendations can be implemented to significantly reduce the number of mishaps that can happen on the construction site. Suggestions made in the report should be argued between experienced workers (Borkovskaya, Bardenwerper, and Roe, 2018). These suggestions are provided below-

• Providing protective gear to personnel who are working on the construction site is recommended in this regard. Gears such as masks, gloves, safety boots can be used to safeguard individuals from any mishaps on the site.

• Upgrading existing pieces of equipment and purchasing new pieces of equipment that are more suited to handle the complex operations of a construction site is recommended. Modern technologies and pieces of equipment have implemented many safety mechanisms that are non-existent in previous models. This is why upgrading equipment is necessary.

• The company must implement a supervisory team that will audit and monitor the workers and ensure that they are Abiding by the safety regulations. Interventions can also work in refining safety conduct (Zaira and Hadikusumo, 2017). Teams of specialists and technicians should also be created that will check and review the status of the pieces of machinery that are used onsite.

• Arranging workshops and training programs can be beneficial to make sure that the workers are adept at handling complex equipment.

Conclusion

This section marks the end of the safety assessment report of the construction project of the West Angelas Power Station, executed by UGL. This report takes a look at different risks that are associated with the many different operations and activities executed by UGL throughout the construction process. The risks are outlined and assessed in a risk matrix. Adequate risk scores are provided so that the risks can be sorted based on their impact on its operations. Recommendations that can help the company avoid and exterminate these risks are also provided in the report.
 

Question 2: Risk management for Lendlease

Introduction

Risk management and planning are significant organizational functions that help ensure that the organization finds success in its operations. It is crucial to implement knowledge and planning regarding risk in choices made by businesses (Vij, 2019). Among others, companies working in the engineering industry also need to apply proper risk planning and management procedures. The planning phase highlights the crucially of actions and guides communication regarding these actions (Willumsen et al. 2019). This report attempts to create a proper risk management system for a prominent construction company, Lendlease. It is an Australian company operating in the real estate industry headquartered in Sydney, Australia (Lendlease. 2021). The report will provide an in-depth analysis of the risks that are apparent in Lendlease’s operations, the goals that need to be met through the risk mitigation system, and how the company’s values align with it. It will contain relevant standards and agendas. The design of the risk management system will be outlined along with a fleshed-out audit plan that will help the company monitor the progress and the system’s functions. The report will conclude with a holistic overview of the entire process.

Risks identified, targeted objectives and values.

Risk identification and highlighting requires a holistic analysis of the operations of Lendlease and recognizing the possible obstructions that can be potentially damaging to the standards, expenses, construction time, and the scope of the company operations. Risk identification generally is executed with groupings depending on their nature or without any groupings attempts (Siraj and Fayek, 2019). Recognition of risks and managing them remains some of the highest priorities of construction projects (Chattapadhyay and Putta, 2021). This is the reason why a proper risk identification of Lendlease's construction operations is needed. The main risks that are prominent in the construction industry can be classified into three separate groups. These are strategic risks, operational risks, and economic risks. Strategic risks are roadblocks that obstruct specific business tactics in achieving success. Operational risks are risks that arise because of incompetency and failure of certain operations, and economic risks are factors that affect the expenditure and revenue of the company. The company is struggling to handle economic risks, as evidenced by the financial struggles of the company in 2019 (Hayford, 2020). Many risks can pop up in Lendlease’s operations.

• The company is a multinational. This means that a sudden shift in the political landscape can pose a threat to the company's operations. The company is explicitly concerned about the US elections, uncertainties regarding Brexit, and the Italian political scenario (Marsh. 2021).

• Unemployment is also a significant concern for multinationals. These risks, along with safety hazards, Natural disasters, contract issues, procurement problems, and social issues such as involuntary migration occurring in many countries, can be identified as major risks for the company.

The main objective of the risk management system will be to make sure that the clients, suppliers, owners, and other stakeholders of the company can attain their goals from the operations of Lendlease and lower negative effects of identified factors on the expenditure, time consumption, and quality of the company's operations. The values of the company align with the risk management systems as it enables the comp [any to fulfil its promises to its stakeholders and maximize value creation for the shareholders.

Risks criteria and management agenda

The criteria are the general standards of risks that will be defined in this segment of the report. It is vital to set up points of reference for the risk level to make it easier to assess certain types of risks and their severities. These criteria can be used for the assessment of several types of risk because of their general nature. Five different criteria have been defined for this particular report. In ascending order of severity, these criteria are – negligible, minor, moderate, significant severe. The utilization of These criteria, along with the likelihood of occurrence of a specific risk, can help assess the importance of a particular risk factor. This can help in prioritizing which risks are to be eliminated first. The likelihood of occurrence has been classified into five subgroups. In descending order of occurrence, these groups are very likely, likely, possible, unlikely, and very unlikely. A risk score is assigned based on these criteria. Description of each criterion, risk score, and other factors are provided in tabular formats.

Design details of the risks management system

This section of the report will outline the details in consideration for the design of the risk management system. The company should be able to apply the risk management system in all operations in the future. This is the reason why the designing process has to be general and constructed in such a way that it can be used in different circumstances. Every organization is dealing with its specific risks, and the risks change drastically based on the operations and roles of the organization (Abd Samad and Dahlan, 2019). For specific problems to not occur, risk management systems should be customized to and complement the specific organization it is being applied in (Willumsen, Oehmen, and Rossi, 2019). Identification of the potential risks is the first step of the system. Before the start of a new operation, experts will assess the potential risks to make sure that the operation is not stunted in the future. Analysis and evaluation of the identified risks will be the second step of the system. Analysts will examine the identified risks and categories them. In this step, the risk criteria and risk scores will be utilized. Step three is the treatment plan. In this stage, actions and strategies will be implemented to avoid, diminish and mitigate the risks that are identified and evaluated. Step four is reviewing the risk management system in light of the insights gained through tackling said project's risks. This review process will add new value to the system making it well equipped to handle risks in the future. Step five of the design process will pay attention to strategies that can help avoid similar risks in the future.
Implementation plan

The implementation plan guides the incorporation of specific strategies and tactics that can help Lendlease with its future projects. This plan will outline the responsibilities and duties that will be given to certain workers, along with pointing out the authorities that will be in charge of the risk management process. This plan will also contain information regarding the procurement and storing of information that is needed to run the project smoothly. Designing and implementation of communication methods that let the operation team quickly convey information to each other is also a part of the implementation plan. The implementation plan and its incorporation are crucial to the success of any construction activities. Various risks that have not been estimated can pop up during the execution of a particular operation. Lendlease must develop accompanying contingency plans that will help in dealing with these risks. The implementation plan will follow the health and safety regulations decreed by the government of the specific nation that the company is working to diminish chances of injury of workers and any other damages that can be resulted from unassessed factors. Steps will be highlighted in the implementation plan that can help with recovering from unexpected disasters that can occur in a construction operation.

Monitoring

Continuous monitoring can help in making sure that the risk management system is working smoothly and individuals are upholding the duties that are reallocated to them. Auditing and review can help with strengthening the system and making it equipped to face the ever-changing risks of the construction industry. Reviewing and updating the system with insights gained from operations can be suggested in this regard to Lendlease. While reviewing the system, the company should take into account feedback from stakeholders such as individuals working on sight, shareholders, project managers, and others who have a significant interest in the projects taken and operations executed by Lendlease. Individuals should be assigned to the task of effective monitoring of the operations taken by Lendlease. Reviews that are monthly, bi-annually, and annually executed are recommended to the company by this report.

Conclusion

This report reports on the creation of a risk management system at Lendlease to aid their operations. The report identifies the risks that are associated with the organizational operations and recommends detail that can help in the creation of the company's risk management plan. Recommendations regarding a prototype agenda, risk criteria formation, and monitoring of the said system are also provided in the report.

References

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Ahn, S., Kim, T. and Kim, J.M., 2020. Sustainable Risk Assessment through the Analysis of Financial Losses from Third-Party Damage in Bridge Construction. Sustainability, 12(8), p.3435. https://doi.org/10.3390/su12083435

Borkovskaya, V., Bardenwerper, W. and Roe, R., 2018, June. Interactive teaching of risk management in the Russian construction industry. In IOP Conference Series: Materials Science and Engineering (Vol. 365, No. 6, p. 062030). IOP Publishing. https://iopscience.iop.org/article/10.1088/1757-899X/365/6/062030/meta

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Marsh. 2021. Lendlease: Risk the Heartbeat of the Business. [online] Available at: <https://www.marsh.com/content/marsh/pacific/au/en_au/insights/research/lendlease-risk-the-heartbeat-of-the-business.html> [Accessed 19 October 2021].

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